Coinbase CEO: FTX’s Missing Funds Were Obviously Stolen.
Crypto exchange Coinbase’s CEO recently publicly condemned former FTX CEO Sam Bankman-Fried’s explanation of how FTX ended up with an $8 billion hole.
In a number of recent interviews, former FTX CEO Sam Bankman-Fried, also known as SBF, continues to defend his innocence in the fall of his crypto exchange.
SBF argues that he didn’t “knowingly commingle” with customers funds, and that the fall of FTX was largely in part due to bad accounting.
“I wasn’t running Alameda, I didn’t know exactly what [was] going on. I didn’t know the size of their position,” SBF claimed during the New York Times DealBook Summit on November 30th.
Coinbase CEO’s Response
Despite these claims of innocence SBF is trying to make however, CEO of crypto exchange Coinbase Brian Armstrong claims that there’s no way $8 billion of FTX’s funds were lost purely because of “bad accounting.”
Instead, Armstrong argues that the $8 billion lost were simply stolen customer funds which were misused by SBF to invest in his hedge fund Alameda Research.
“I don’t care how messy your accounting is (or how rich you are) – you’re definitely going to notice if you find an extra $8B to spend.” Armstrong argues, “Even the most gullible person should not believe Sam’s claim that this was an accounting error.”
“It’s stolen customer money used in his hedge fund, plain and simple.”
It's stolen customer money used in his hedge fund, plain and simple.
— Brian Armstrong (@brian_armstrong) December 3, 2022
So far, neither SBF nor any other FTX executive has responded to these accusative tweets made by the Coinbase CEO.